IB summons Everest board members

KATHMANDU, SEP 19 -

The Insurance Board (IB) has summoned the entire board members of Everest Insurance Company. The regulator on Tuesday dispatched a letter to Everest, asking the board members to be present at IB office by 11:3 am on Wednesday.

The latest IB move follows the clarification sent by Everest on its decision to suspend issuing new policies, which failed to convince the board. “We want to ask each board member individually the reason behind their irresponsible decision,” said IB Chairman Fha-tta Bahadur KC. “Their attitude during the meeting will be instrumental in determining IB’s further action against the company.”

Currently, Everest’s board is chaired by Rajendra Kumar Khetan, while Ratan Lal Sanghai is the vice-chairman. Other board members are Madhu Sudhan Agrawal, Birendra K Shah, Niranj-an Tibrewala, Om Prakash Sikaria, Prem Prakash Khetan, Prasad Gyawali and Rabi K Tibrewala.

IB sources said if the insurance company roll backs its decision to stop issuing new policies and pledges in written to abide by IB’s regulation, the board will soften its attitude towards the company. “Otherwise, our soon-to-be-held board meeting will take a stringent, exemplary action agai-nst Everest,” said the IB official, adding that the action may include dissolving the board and taking over the company’s management.

After IB barred Everest from issuing fire policies, the company decided to halt issuing new policies. IB had taken action against the company for compensating Himalayan Snax, the manufacturer Mayos noodles and promoted by the Khetan Group, before surveyors gave the final report about the damage. The IB had slapped Everest CEO Kewal Krishna Shrestha with a fine of Rs 10,000 for making payment ‘illegally’ to the noodle producer.

Source: The Kathmandu Post